11:35 AM EDT, 06/21/2024 (MT Newswires) -- Nike's ( NKE ) commitment to "faster and more meaningful" product launches could drive sales turnaround in the second half of fiscal 2025, BofA Securities said in a note to clients.

"We have seen green shoots on the innovation front as three of its major retailers...are energized by its new products," BofA said, pointing to Dick's Sporting Goods (DKS), JD Sports and Foot Locker ( FL ) .

The report said consensus estimates are bottoming while the stock is trading at a 10-year trough-relative P/E. BofA kept its buy rating on Nike ( NKE ) with a price objective of $113.

BofA also said that indicators have inflected to upcycle after all six of its Athletic Supply Chain Indicators, including global athletic footwear growth and athletic apparel growth, showed flat or sequential improvement for the 2nd consecutive quarter.

The improvement was driven by suppliers' revenue growth and textile exports of major sourcing countries, the report said.

BofA also kept its buy rating for Adidas, saying that it is in the early stages of multi-year turnaround.

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